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Reckitt Benckiser Group Plc-ADR (RBGLY)
:RBGLY
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Reckitt Benckiser Group
(OTC:RBGLY)
Rating:69Neutral
Price Target:
$14.00
â–²(4.40%Upside)
Reckitt Benckiser Group (RBGLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$45.68B
Dividend Yield4.7%
Average Volume (3M)16.87K
Price to Earnings (P/E)25.7
Beta (1Y)0.13
Revenue Growth-0.29%
EPS Growth-8.82%
CountryUS
Employees37,900
SectorConsumer Defensive
Sector Strength56
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.48
Shares Outstanding3,396,069,000
10 Day Avg. Volume22,795
30 Day Avg. Volume16,871
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.88
Price to Sales (P/S)0.00
P/FCF Ratio4.26
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$15.24Price Target Upside13.65% Upside
Rating ConsensusHold
Number of Analyst Covering0
Reckitt Benckiser Group Business Overview & Revenue Model
Company DescriptionReckitt Benckiser Group (RBGLY) is a global consumer goods company specializing in health, hygiene, and nutrition products. The company is headquartered in the United Kingdom and operates in over 60 countries worldwide. Its diverse portfolio includes well-known brands such as Lysol, Dettol, Durex, Nurofen, and Enfamil, which are sold across various segments including health, hygiene, and nutrition. Reckitt's commitment to innovation and sustainability drives its mission to create healthier lives and happier homes.
How the Company Makes MoneyReckitt Benckiser Group generates revenue primarily through the sale of its health, hygiene, and nutrition products. The company's revenue model is centered around its diverse range of branded consumer goods, with key revenue streams coming from direct sales to retailers, distributors, and through e-commerce platforms. Significant partnerships with large retail chains and extensive distribution networks enhance its market reach and sales volume. The company's focus on innovation, brand equity, and strategic marketing initiatives also play a crucial role in maintaining its competitive edge and driving sales growth. Additionally, Reckitt invests in consumer insights and product development to align with emerging trends and consumer preferences, further contributing to its financial performance.
Reckitt Benckiser Group Earnings Call Summary
Earnings Call Date:Mar 06, 2025
(Q4-2024)
| % Change Since: 2.92%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook with significant achievements in earnings growth, market share gains, and innovation successes. However, challenges persist in the Nutrition segment and Essential Home, along with impacts from a weak cold and flu season. Overall, the positive aspects slightly outweigh the negative ones, indicating cautious optimism for future performance.Q4-2024 Updates
Positive Updates
Strong Earnings Growth
Adjusted operating profit increased by 8.6% and EPS grew by 7.9% due to effective cost management and successful implementation of the Fuel for Growth program.
Market Share Gains
55% of top CMUs held or gained market share across Health and Hygiene, indicating effective market strategies and product positioning.
Innovation Success
New products and category creations, such as Lysol Air Sanitizer and Durex Intensity, drove higher-margin growth and strong market performance.
Record Cash Returns to Shareholders
£2.7 billion returned to shareholders through dividends and share buybacks, a 75% increase from the previous year.
Emerging Markets Growth
Strong performance in China with double-digit net revenue growth and promising expansion in regions like Africa and Latin America.
Negative Updates
Decline in Nutrition Segment
Nutrition segment saw a like-for-like net revenue decline of 7.3% due to supply disruptions from the Mount Vernon tornado and evolving regulatory environment challenges.
Weak Cold and Flu Season Impact
Health segment growth was partly offset by a weak cold and flu season, affecting sales of products like Mucinex.
Challenges in the Essential Home Segment
The Essential Home segment faced a competitive market, particularly in air care, contributing to anticipated negative like-for-like growth in the first half of 2025.
Biofreeze Impairment Charges
£838 million of impairment charges reported for IFCN and Biofreeze due to a more challenging marketplace in topical pain relief.
Company Guidance
During the call, Reckitt provided detailed guidance for its fiscal year 2025, emphasizing its expectations for continued growth and strategic shifts. The company aims for 3% to 4% like-for-like net revenue growth in its Core Reckitt segment, with balanced delivery across the first and second halves of the year. Essential Home and Mead Johnson Nutrition are expected to see low single-digit growth, with both businesses showing declines in the first half. The adjusted operating profit is projected to grow ahead of net revenue, supported by the Fuel for Growth program, which targets a 300 basis point reduction in fixed costs by 2027. In 2024, the group achieved a 1.4% net revenue growth, consistent with prior guidance of 1% to 3%. The adjusted operating profit increased by 8.6%, and the company returned £2.7 billion to shareholders, reflecting a 75% increase from the previous year. Regionally, strong performances were noted in Europe and developing markets, notably China, while North America faced challenges due to a weak cold and flu season. The company also announced plans to exit Essential Home and Mead Johnson Nutrition, with new leadership in place at Essential Home and ongoing litigation defense in Nutrition.Reckitt Benckiser Group Financial Statement Overview
Summary
Reckitt Benckiser Group shows solid financial health with strong profitability and cash flow metrics, despite a recent dip in revenue. The balance sheet remains stable, with manageable leverage and good return on equity. While the company is well-positioned in terms of profitability and cash generation, future growth may be challenged by the declining revenue trend.Income Statement
Over the past year, Reckitt Benckiser Group experienced a decline in total revenue from $14.61 billion to $14.17 billion, indicating a revenue contraction of approximately 2.68%. Despite this, their gross profit margin remains robust at 60.66%, underscoring effective cost management. The EBIT margin is healthy at 17.11%, although the net profit margin decreased slightly to 10.06%. Overall, the company maintains strong profitability, but the recent downturn in revenue growth is a concern.78
Positive
Balance Sheet
The balance sheet shows stability with a debt-to-equity ratio of 1.29, indicating a moderate level of leverage. The equity ratio stands at 26.47%, reflecting a solid capital structure. Return on equity is calculated at 21.28%, demonstrating good returns for shareholders. However, the company's total assets have decreased, which may impact future growth potential.72
Positive
Cash Flow
Reckitt Benckiser Group's cash flow statement highlights robust free cash flow to net income ratio of 1.56, emphasizing strong cash generation relative to net income. Operating cash flow slightly increased to $2.682 billion, reinforcing the company's ability to generate cash from operations. Nevertheless, the free cash flow growth rate is modest at 1.37%, suggesting limited cash flow expansion.80
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 14.17B | 14.61B | 14.45B | 13.23B | 13.99B |
| Gross Profit | 8.60B | 8.76B | 8.36B | 7.69B | 8.44B |
| EBITDA | 2.96B | 3.19B | 3.94B | 436.00M | 3.48B |
| Net Income | 1.43B | 1.64B | 2.33B | -63.00M | 1.19B |
Balance Sheet | |||||
| Total Assets | 25.30B | 27.14B | 28.74B | 26.95B | 31.29B |
| Cash, Cash Equivalents and Short-Term Investments | 760.00M | 1.39B | 1.16B | 1.26B | 1.65B |
| Total Debt | 8.66B | 8.54B | 8.88B | 9.56B | 10.56B |
| Total Liabilities | 18.58B | 18.67B | 19.26B | 19.49B | 22.13B |
| Stockholders Equity | 6.70B | 8.45B | 9.44B | 7.40B | 9.12B |
Cash Flow | |||||
| Free Cash Flow | 2.22B | 2.19B | 1.95B | 1.32B | 3.12B |
| Operating Cash Flow | 2.68B | 2.64B | 2.40B | 1.70B | 3.52B |
| Investing Cash Flow | -396.00M | -466.00M | -139.00M | 239.00M | -512.00M |
| Financing Cash Flow | -2.71B | -1.81B | -2.38B | -2.29B | -2.86B |
Reckitt Benckiser Group Technical Analysis
Neutral
13.41
Price Trends
13.48
Negative
13.21
Positive
12.67
Positive
Market Momentum
-0.03
Positive
41.66
Neutral
1.22
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RBGLY, the sentiment is Neutral. The current price of 13.41 is below the 20-day moving average (MA) of 13.64, below the 50-day MA of 13.48, and above the 200-day MA of 12.67, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 41.66 is Neutral, neither overbought nor oversold. The STOCH value of 1.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RBGLY.
Reckitt Benckiser Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $146.86B | 23.99 | 30.53% | 3.45% | 1.99% | -10.59% | |
69 Neutral | $45.68B | 25.68 | 18.96% | 4.70% | -0.29% | -8.82% | |
68 Neutral | $42.06B | 17.27 | 229.84% | 3.98% | -3.12% | 34.80% | |
68 Neutral | $41.07B | 39.00 | 10.22% | 3.75% | -1.18% | -29.18% | |
66 Neutral | $71.44B | 24.96 | 977.07% | 2.37% | 0.98% | 12.12% | |
65 Neutral | $357.96B | 24.25 | 30.29% | 2.75% | -0.16% | 2.74% | |
50 Neutral | AU$2.20B | -0.62 | -14.39% | 11.94% | 7.38% | -60.19% |
* Consumer Defensive Sector Average
Performance Comparison
RBGLY
Reckitt Benckiser Group
13.36
2.45
22.46%
CL
Colgate-Palmolive
87.24
-9.19
-9.53%
KMB
Kimberly Clark
127.91
-11.14
-8.01%
PG
Procter & Gamble
155.62
-8.80
-5.35%
UL
Unilever
59.79
3.59
6.39%
KVUE
Kenvue, Inc.
21.85
4.19
23.73%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.